For those starting a new business, the initial stages are arguably the most important. Our attorneys can help you decide what type of business will be best to accomplish your goals.
Business formation is possibly the most crucial stage as it will arrange your business liabilities and taxes. Some business models leave the owner completely liable for any mishaps the business makes, while others offer serious legal protections. Our team can help determine how much control you want over the business and balance it with the risks involved with that type of venture. We can also help draft the necessary foundational documents, so they accurately reflect your interests and file them with the appropriate bodies.
For an assessment of your claim with our corporate attorneys, contact Howe & Associates at (678) 680-6983.
Forming a New Corporation in Macon, GA
Help forming a new business is one of the most important services our corporate attorneys provide in Macon. Getting the structure of your business right can not only affect your short-term goals but also cause issues years down the line. Our team will take the time to review your business objectives while taking into account the partners and employees that might be part of your venture. The following is a sample of the most common types of business we can help you form in Macon:
Sole Proprietorships
Starting a sole proprietorship is usually the easiest way to structure your business. In a sole proprietorship, there is no separation between you and the business.
It is not uncommon to name the business after yourself. Another common option is to create a made-up name, but you must file a “doing business as” statement with your registration to operate with that name.
However, one drawback of a sole proprietorship is that you are fully responsible, personally, for the liabilities and debts of your business. However, if you are looking to get started quickly with the least amount of overhead, forming a sole proprietorship is often the most inexpensive way to start your business.
General Partnerships
If two or more people wish to start a business, they can form a general partnership. General partnerships offer the advantage of not being recognized as a distinct entity for tax purposes. This means that when a partnership files a tax return, the profits and losses are transferred to the partners’ individual tax returns. This can be a good strategy to get certain beneficial tax treatment for all named partners.
However, this structure has risks like any other. For example, those named as general partners can be held individually responsible for the company’s outstanding debt and liabilities. Even partners with a minority interest in the general partnership can be held liable.
Limited Partnerships
If a general partnership turns out to be too risky, you should consider forming a limited partnership. Typically, one general partner is required for a limited partnership, although there can be multiple limited partners.
However, limited partners are not responsible for any business obligations that exceed their invested amounts in the company. The tradeoff, though, is that they are usually constrained to a passive position in the business’s ongoing operations.
Corporations
Corporations are arguably one of the most common types of businesses formed in Macon. They are an attractive option because they shield their shareholders from the business’s liabilities. While creditors might try to “pierce the corporate veil” to learn important information about your business, none of the other options mentioned gives more protection to the owners of the company.
Incorporating your business in Macon can offer you several tax benefits. These could potentially cover your business’s expenses, which might be difficult to justify for other types of businesses. As corporations must adhere to numerous state and federal regulations during their formation and ongoing operations, our team can assist you in forming your business and drafting the required bylaws and articles of incorporation.
Limited Liability Companies
An LLC, or limited liability company, offers many of the benefits of both corporations and partnerships. Like corporations, LLCs protect their owners from responsibility for the business’s liabilities.
At the same time, like partnerships, they provide certain tax benefits to their owners. However, unlike limited partnerships, LLC owners can actively participate in the business’s operations.
LLCs also differ from corporations in that they do not have shareholders, officers, or directors. Instead, LLC owners are considered “managing members” and make the business’s day-to-day decisions. Our attorneys can help you draft the foundational documents you need so that your LLC is structured the way you intended.
S Corporations
Companies in Macon are usually taxed under Internal Revenue Code Subchapter C. However, your company can choose to be taxed under subchapter S, which is why it is called an S corporation.
If a company is taxed under subchapter S, it is taxed as a partnership. This means that the company’s profit or loss is reported on the owner’s tax returns instead of the company’s.
Joint Ventures
A joint venture is typically created for a highly particular reason and for a limited time. An example of this is when two businesses come together to form a joint venture to pursue a related undertaking that neither of them could do alone. Our team can review your case to determine what risks your business will face with the venture and draft documents to protect your interests.
Factors to Consider When Starting a Business in Macon, GA
Our attorneys can help you review a number of factors when starting your business. Any new business owner should consider the following issues seriously, as they will significantly impact your business and its future success:
Control Over the Company
A major concern that most business owners are already thinking about is how much control they want over the organization. This issue gets even more complicated when multiple partners are involved.
If you wish to have near-complete control of your business, our attorneys can help you set up a sole proprietorship. You can run these companies as you see fit, allowing you the greatest freedom to decide your business’s trajectory.
If individual control does not factor into your business plans or you are working with other partners, one of the incorporation options might work best. However, corporate partners must answer to shareholders, which can severely limit their decision-making capabilities.
Liability
You likely have also considered your liability as you planned your business venture. Having complete control of your business comes with having total responsibility when things go wrong. If you start a sole proprietorship, your personal assets could be used to satisfy any debts or services you might owe.
On the other hand, LLCs and corporations offer the best protection since the company will shield you from individual responsibility.
Our Macon, GA Corporate Attorneys Can Help Your Start the Business that is Right for You
Call Howe & Associates today at (678) 680-6983 to get your case reviewed by our corporate lawyers.